Startup to Scaleup: Focus on Sugmya Finance which is transforming micro-lending with its digital focus

Starting a business is a common aspiration, but many aspiring entrepreneurs let go of their ideas due to financial limitations. This is where non-banking financial companies (NBFCs) step in, extending support to these small-scale businesses.

With focus on this impact of NBFCs and their lending push for small-scale entrepreneurs, we interviewed Brajmohan Singh, Co-Founder of Sugmya Finance for the 14th episode of our 'Startup to Scaleup'.Established in 2019, Sugmya Finance Private Limited (SFPL) is a Delhi-based NBFC aiming at inclusive growth and women's financial empowerment.

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Sugmya Finance offers MSME loans, microloans, and consumer durable loans and has served thousands of households across 10 states through around 250 branches.In this conversation with Avni Raja, BM Singh talked about various aspects of the business. He said the primary challenge faced by Sugmya revolves around shifting mindsets towards digital adoption.

Talking about the expansion plans, Singh outlined that Sugmya Finance targets a ₹750 crore Assets Under Management (AUM) for the current year, with an existing workforce of approximately 1,250 employees. 'Our ambitious goal involves aiming for a 2.5 times growth in AUM annually, reflecting their drive for substantial and consistent financial expansion' Singh added.

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In terms of fundraising, Singh said Sugmya Finance has had a smooth journey in securing funds, never encountering hurdles in their fundraising efforts. ''We've successfully brought aboard more than 60 lenders, including significant entities like SBI''.

Looking ahead, Singh further said that the company is gearing up for a series-A fundraising round in the near future, indicating their proactive approach to further strengthen their financial standing.